‘Running costs’ of electric cars are a ‘big barrier’ for used EV market
Motorists are being encouraged to switch to electric vehicles, with the sale of new petrol and diesel cars set to be banned from 2030, as the UK tries to cut down on vehicle emissions.
Prices of new electric vehicles have been a sticking point for some drivers, with prices increasing in response to massive demand, as well as after-effects of the pandemic and a global shortage of semiconductors.
The cost of used or second-hand electric vehicles has also been pointed out by experts as a key factor needed to help the majority of Britons switch to EVs.
Joanne Robinson, director of lenders at Zuto, spoke to Express.co.uk about what needs to happen before a fledgling second-hand EV market can be sparked.
She said: “On the finance side of things, we know the industry is ready — the vast majority of the lenders we work with will now finance a used EV today.
“The main issue stems from the supply side. Although for many people, the demand is there for second-hand EVs, there is still a severe lack of affordable supply.”
Because of the low supply of electric vehicles, the cost of second-hand electric vehicles has been inflated for most consumers.
Some experts are predicting that it could take between three and five years for there to be a healthy supply of vehicles.
Joanne Robinson added: “Running costs are also a big barrier for consumers when going electric, even with second-hand models.
“For example, owning an EV now has become fairly expensive due to rising energy prices.”
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At the end of April, Zapmap data showed there are over 760,000 fully electric cars on UK roads, with a further 490,000 plug-in hybrids.
Farhad Tailor, managing director at V12 Sports and Classics, highlighted how the Government had continued to reduce support for EV drivers through the Plug-in Grants.
The Plug-in Car Grant was pulled last year after increasing sales of EVs from less than 1,000 in 2011, to almost 100,000 in the first five months of 2022 alone.
It offered drivers the chance to claim £1,500 off the price of a new electric car, with some drivers still benefiting from money off, including those looking to buy vans, trucks and lorries.
Support for drivers with the EV Homecharge Scheme was also scrapped last year, which provided grant funding of up to £350 towards the cost of a home charge point.
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After April 2022, the EVHS requirements were altered so homeowners who live in single-unit properties such as bungalows and detached, semi-detached, or terraced housing could claim.
Mr Tailor added: “Consumers will need to do their homework first, as the overall cost of EV ownership is important to take into account.”
More than 250,000 battery electric vehicles were registered in 2022, a growth of 40 percent compared to sales in 2021.
It is hoped these figures will continue to increase in the coming years, with fleets playing an important role in a healthy supply of second-hand electric cars, hopefully forcing prices down.
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